Mahindra Logistics Limited's Q2FY25 EBITDA fell short of estimates, with network services growing 46.1% YoY, while 3PL saw a modest 6.8% increase. Gross margins improved in network services but declined in 3PL due to unabsorbed space and increased manpower costs. The company plans to invest INR 500mn in Rivigo, aiming for EBITDA positivity by Q4FY25, though achieving the necessary volume growth appears challenging. Consequently, FY25E/FY26E EPS estimates have been reduced by 61.5% and 6.8%, respectively, with a revised target price of INR 420.
